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Technology Stocks : Rambus (RMBS) - Eagle or Penguin -- Ignore unavailable to you. Want to Upgrade?

To: Ibexx who wrote (4769)	6/22/1998 4:56:00 PM
From: REH	Read Replies (1) \| Respond to of 93625

It was in the cards - I'll also add a "I told you so" to a few other threaders. Anyone who's interested: Rambus potential spreadsheet and analysis available if you send me an email. reh

To: Ibexx who wrote (4769)	6/22/1998 5:09:00 PM
From: Barry Grossman	Read Replies (4) \| Respond to of 93625

Ibexx and thread: Here's the story in Briefing.com (when they finally figured it out). RAMBUS INC (RMBS) 44 13/16 +6. Since its initial public offering a little over a year ago, Rambus has been known more for the volatility of its stock than for its technology. Playing a significant role in the stock's ascent from its $12 IPO price to the issues 52-week high of $86.75 (+623%) is the company's relationship with Intel Corp. Once again, the Intel affiliation is contributing to a sharp increase in the price of the shares. Rambus today announced that Intel has begun system testing of functional Direct Rambus DRAM devices. However, this time the names that are doing the most to attract buyers to the stock are Dell and Compaq. In the same press release, the world's two premier box-builders confirmed their intention to ship PCs using Direct Rambus technology for main memory in 1999. The announcement means that Rambus is one step closer to making its technology the industry standard. According to Rambus, this milestone is on track with the technology development program disclosed in December 1996 that Intel platforms will use Direct Rambus memory starting in 1999. Direct Rambus technology will enable the DRAM industry's highest level of performance to date -- 1.6 gigabytes per second of peak bandwidth from a single device. A single Direct RDRAM device supports four pipelined transactions to sustain up to 95% effective bandwidth. The technology is the only high-bandwidth memory interface with broad industry support, with over 50 companies committed to delivering Direct Rambus within their products, including chip makers accounting for 96% of the worldwide DRAM market and 20 chip makers (including Intel). At a technology conference earlier this year, Rambus' CFO predicted that when products incorporating Direct Rambus technology begin shipping in 1999, the company's margins will double from the 20% level and royalty revenues will rise to 40% of total sales from the current level of 25%. --------------------------------------------------- It's amazing that the news was out there all the time and that you could have bought this am under 40! Ibexx, I understand that you don't do short term calls but I couldn't resist today and bought some July 45's. I'm already happy. This is a small short term speculation. The RMBS shares will be tucked away for the long term. I appreciate your reasoned and calm approach to the market but I did detect a lot of emotion from you today. Hope we see the same action tomorrow! With the story getting wider mention and notice, I think we'll see a big pop over the next few days. As if today wasn't. This could turn into a situation akin to the one Cramer was describing last week when he discussed stocks that only go up. What is the float on RMBS? Might not be too many for sale and we may see a skyrocket now that the commitment is there from Compaq, Dell, not to mention Toshiba's and Intel's comments. Barry

To: Ibexx who wrote (4769)	6/22/1998 6:08:00 PM
From: dougjn	Read Replies (2) \| Respond to of 93625

<<RMBS's ultimate success was never doubtful in my mind, but Intel's swift move to gain control of Semicon and DELL/CPQ's concomitant announcement of the 1999 shipping date (of PCs based upon RDRAM) did come as a surprise, timing-wise.>> Yes, my take exactly. And I think the Dell/Cpq announcement now rather than the fall surprised the rest of the Rmbs bulls. Hence the move today. If we get some follow on announcements, it will snowball up. Asia permitting. If not, it may recede for a bit, until we do. Doug